- STOXX 600 edges 0.4% higher
- Geopolitical tensions boost oil prices
- SAP shares tumble after results
Jan 29 (Reuters) - European equities rebounded on Thursday, lifted by a surge in the price of oil and precious metals that cushioned a hit from earnings-related jitters.
The pan-European STOXX 600 rose 0.4%, as of 0945 GMT, a day after declining 0.8%. Mining stocks rose 2.7% and were the biggest gainers on the index, while energy shares also rose 1.9%.
Lingering worries about trade tensions and geopolitical frictions boosted the safe-haven appeal of gold, while silver also climbed on demand for cheaper alternatives to the yellow metal.
Meanwhile, oil prices edged higher on concerns about supply chain disruptions, bolstering the case for commodity-related stocks.
Traders were worried about potential U.S. military action against Iran, a key Middle Eastern producer, after President Donald Trump threatened the country with an attack if it did not make a deal on nuclear weapons.
EARNINGS UNDER SPOTLIGHT
A packed earnings calendar has kept investors busy this week. U.S. Big Tech results are being parsed for clues on the AI trajectory, while European earnings are in focus for signs that corporate financial health can hold up even at a time of heightened trade uncertainty.
However, the numbers released so far this week have underwhelmed markets.
"A lot of it is about the guidance for the future and concerns about whether we can see the same pace of growth going forward," said Marija Veitmane, head of equity research at State Street.
SAP's shares fell 13.3% and were on course for their biggest daily drop since 2020, after the German enterprise software maker reported fourth-quarter revenue in line with market estimates.
Deutsche Bank also lost 2% despite posting its largest annual profit since 2007.
European tech stocks were down 0.5%, even as futures tied to the tech-heavy Nasdaq index in the U.S. rose 0.4%.
"People should not diversify out of the U.S. and out of technology stocks. That's one area where profitability is unmatched. It's concentrated and expensive, but that's for a really good reason," Veitmane said.
Germany's DAX index dropped 1%. On Wednesday, the euro zone's biggest economy lowered its growth forecasts for this year and the next, citing heightened uncertainty around global trade and a slower-than-expected impact from economic and fiscal policy measures.
Reporting by Niket Nishant and Avinash P in Bengaluru; Editing by Janane Venkatraman and Shinjini Ganguli
Source: Reuters